Published: Fri, April 20, 2018
Markets | By Josh Butler

Qualcomm begins layoffs as part of cost cuts

Qualcomm begins layoffs as part of cost cuts

News of the layoffs, first reported Wednesday, comes on the back of Qualcomm management's promise to shareholders that it would reduce spending by $1 billion in order to make up for declining sales. However, Qualcomm has a contingency in place and it said in a statement that it will be offering severance payments to those affected.

This isn't the first time Qualcomm has cut jobs.

"As part of the cost reduction plan announced in January, Qualcomm is conducting a reduction of our full-time and temporary workforce", Qualcomm said in a statement. Around 3,300 of those roles were added during the company's 2017 fiscal year.

The layoffs come just weeks after an agressive acquisition offer put Qualcomm's business on the worldwide stage.

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He added the countries "still have to talk about trade, and that the prime minister understands that". He then referenced the World Trade Organisation, saying "look how bad" that was for the US.

The chipmaker had said in January that it is aiming to save almost $1 billion in costs when it risked a hostile takeover from Broadcom.

The numbers included in the latest reduction will be clarified in the next few days when the chipmaker files so-called WARN notices, or Worker Adjustment and Retraining Notification, with California, one of the people said.

A person familiar with the situation told Bloomberg that these layoffs represented majority of the cuts that the company would be making, though there may be more layoffs in other departments.

Back in March, Trump blocked Broadcom from pursuing a hostile takeover of US rival Qualcomm, ruling the proposed combination would imperil national security.

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